John Lyons (Dublin North West, Labour)
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Question 68: To ask the Minister for Finance the basis for the decision to phase out the age tax credit; and how this will be conducted over the course of the next four years. [5935/12]

Michael Noonan (Limerick City, Fine Gael)
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The position is that in Budget 2011, the previous Government reduced the value of the age tax credits by approximately 25 per cent from €325/€650 to €245/€490 for single and married respectively with a view to them being abolished over four years. As the Deputy is aware, in line with the commitment in the Programme for Government, there have been no changes in tax rates, tax bands or personal tax credits in Budget 2012.

Any tax changes for future years will be considered as part of the Government's ongoing budgetary and fiscal policy.

Michael Kitt (Galway East, Fianna Fail)
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Question 69: To ask the Minister for Finance how the increase in VAT from 1 January 2012 is calculated in relation to utility companies and agencies which issue bills covering December 2011 and January 2012; and if he will make a statement on the matter. [5946/12]

Michael Noonan (Limerick City, Fine Gael)
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The increase in the standard rate of VAT from 21% to 23% applies with effect from 1 January 2012. In the case of continuous supplies of telecommunications services, electricity or gas, for which a bill is issued at least every three months, the rate of VAT that should be charged is the rate in force at the date of issue of the bill. In all other cases of services to private individuals, the correct rate is the rate in force at the time of supply of the services. The Revenue Commissioners have published a comprehensive information note about the application of the increase in the standard rate of VAT, which is available on their website – http://www.revenue.ie/en/tax/vat/leaflets/increase-in-standard-rate.html.